The Paris stock exchange is posting a modest gain of 0.2% this morning, hovering around 8,040 points, with notable support from L'Oréal (+1.8%), Société Générale (+1%), and EssilorLuxottica (+0.9%).
Markets are closely watching developments around a potential peace process in Ukraine, as well as the increasingly likely prospect of an interest rate cut by the US Federal Reserve next month.
Indeed, the latest US economic data has reinforced expectations for another rate reduction by the Federal Reserve on December 10. According to the CME's FedWatch tool, nearly 83% of traders now consider this scenario credible.
Providing further reassurance, the S&P 500 has climbed back above its 50-day moving average of 6,750 points--which it had dipped below a week ago--rising more than 0.9% to 6,766 points.
With risk appetite returning, market stress is easing, as evidenced by the "VIX" volatility index--often referred to as the fear gauge--falling back below the 20-point threshold, which has significantly calmed the atmosphere.
"Once again this year, sellers find themselves on the wrong side of the market," notes Michael Brown, strategist at Pepperstone. "The US economy remains solid, earnings growth is robust, business sentiment is improving, and monetary policy remains accommodative: a combination of factors that is clearly pushing risk assets higher," the analyst adds.
"Add to this a very favorable seasonal pattern, flows driven by FOMO (fear of missing out) at year-end, and the resumption of share buybacks, and you have an environment that would be difficult--if not unwise--to bet against for now," he concludes.
While investors will be watching US durable goods orders at 2:30 p.m., trading volumes are expected to be thin and market moves limited ahead of Thanksgiving, a public holiday during which Wall Street will be closed.
In the bond market, the yield on France's 10-year OAT stands at 3.41%, compared to 2.68% for the German Bund of the same maturity.
Brent crude is down 0.2% at $62.5, ahead of the release of US oil inventory data at 4:30 p.m. On the Forex market, the euro remains steady against the dollar, trading around $1.15.
In French corporate news, Dassault Systèmes has announced an expanded partnership with Mistral AI, under which the enterprise software designer will now offer "sovereign" AI services aimed at regulated industries and public administrations in Europe.
Solutions30 has revealed it is extending its strategic partnership with Spirii, a provider of electric vehicle charging platform solutions, to accelerate the deployment and maintenance of charging stations across Europe.
Finally, Compagnie des Alpes reports that its subsidiary, the Société d'Aménagement de La Plagne (SAP), has been selected by the Syndicat Intercommunal de la Grande Plagne (SIGP) following a competitive process.
As a result, SAP has been awarded the renewal of the Public Service Delegation (DSP) contract for the development and operation of the La Plagne ski area (including lifts and slopes), as well as the management of intra-resort shuttles and the bobsleigh track.
